Hulu seeks buyers, gets $500 million bid from former News Corp president

Late last week, Reuters reported that former News Corp president Peter Chernin, who now runs The Chernin Group, made a $500 million bid to buy the TV streaming website Hulu. The Chernin Group owns stakes in Pandora Media Inc and the related production company Chernin Entertainment has produced films and TV shows such as New Girl, Terra Nova, and Rise of the Planet of the Apes.

Hulu is currently jointly owned by News Corp and Walt Disney Co. Peter Chernin had a hand in building Hulu back in 2007 when he was on the website's board, says Reuters. Chernin left News Corp in 2009 to build his own company. According to Reuters, News Corp and Walt Disney Co "reached out to potential buyers in March [of 2013] after initially contemplating a deal in which one [News Corp. or Disney] would buy out the other. It is not clear whether that transaction is still being contemplated."

Last year, Providence Equity Partners invested $200 million in The Chernin Group, and then turned around and sold its 10 percent stake in Hulu for $200 million dollars. That put the valuation for the streaming service at $2 billion total. Hulu has three million paying subscribers for its premium service, and reported $700 million in revenue last year.

Odd, I do not see ads every 5 minutes and I dont have Hulu+. And at least the shows I can be bothered to attempt to watch, The Following, The Americans, Bones and Castle seem to appear a week after airing. So I think there is some hyperbole in the proceeding posts.

Odd, I do not see ads every 5 minutes and I dont have Hulu+. And at least the shows I can be bothered to attempt to watch, The Following, The Americans, Bones and Castle seem to appear a week after airing. So I think there is some hyperbole in the proceeding posts.

Try other shows?

1. Arrow - The intro + beginning credits is less than 5 minutes, you get a commercial before and after.

The exact same with the following shows:

WipeoutSouth ParkRevolutionTerra NovaHuman TargetFamily Guy

I could go on, if you like. I might as well go back to Cable with the idiots who are running Hulu.

I don't have any of these issues with Hulu. As far as people complaining about their shows not available on all Hulu devices, talk to those studios, it's a licensing issue not a Hulu issue. What kills me about traditional media studios is just how dumb and slow they are to realize anything. People will pay to watch their shows (and back catalogs) on demand anywhere and will watch commercials! But delaying release to streaming services by days (looking at you CBS) is just so dumb, Hulu has inventory sells out all the time why delay releasing material? I just don't get it.

Netflix needs to buy Hulu, then buy HBO. Raise capital to do it if they have to and then use both those assets and their deal with Disney to revolutionize TV delivery. I'd love to see the Cable companies bring all their lawyers to bear to stop it. It'd be a glorious battle; one I would hope Netflix would win. Maybe even expose the cable cartel for what it is.

Sadly, Netflix couldn't even approach the cable cartel right now without being run out of the building and also losing their Disney contract.

Netflix + Hulu + HBO Go is largely considered the holy grail of all TV streaming options. Having it all under one roof would threaten cable subscriptions more than satellite ever could.

Did it ever occur to anyone that they are making Hulu suck for the express reason of getting people to come back to cable? They don't want Hulu to succeed, they want it dead and to make us all give up the cord cutting. They want a one-way communication with us. They broadcast, we consume. If Hulu stays, it has to compete with user generated content. They don't want that, they want to have a monopoly on information and entertainment. They want to be the only ones you go to. So they neuter Hulu.

Is Hulu really at fault? They are at the mercy of the content providors. If NBC or whomever tells Hulu they either give over ad revenue and only show a season of content, or they get no content at all.

I'm not saying you need to support them; if you aren't happy with the service, don't pay. But don't get angry at them about it over something they might not control, unless you have evidence they are the greedy idiots ruining their own service.

Unless Hulu looses the ads I'll never be back. Sorry you can make the comparison to cable, but even then they are as corrupt. If I'm paying money I expect commercial free at this point in the media consumption game.

Is Hulu really at fault? They are at the mercy of the content providors. If NBC or whomever tells Hulu they either give over ad revenue and only show a season of content, or they get no content at all..

The thing is Hulu is owned by a group of traditional media companies - namely NBCUniversal, Disney-ABC, and Fox in pretty close to an even split. If they wanted to show full seasons with no restrictions they could if they wanted to they own (or rather their owners own) the content in the first place.

I have to agree with the idea that Hulu was designed to fail so that these huge media companies can come along and say "There, we tried it and it didn't work!" and then go back to their 50+ year old business model.

Is Hulu really at fault? They are at the mercy of the content providors. If NBC or whomever tells Hulu they either give over ad revenue and only show a season of content, or they get no content at all..

The thing is Hulu is owned by a group of traditional media companies - namely NBCUniversal, Disney-ABC, and Fox in pretty close to an even split. If they wanted to show full seasons with no restrictions they could if they wanted to they own (or rather their owners own) the content in the first place.

I have to agree with the idea that Hulu was designed to fail so that these huge media companies can come along and say "There, we tried it and it didn't work!" and then go back to their 50+ year old business model.

Unfortunately, they will succeed into driving everyone to Torrents. Then as you say, blame the "pirates". That has been their tactic all along -- vilify file sharing and rally the troops around them. Player Piano, mix tapes, VCR ... the creative community has been falling line & sinker for decades.

Heh. Most of the criticisms of Hulu Plus above are a little silly. There are commercials, but they are not 'every 5 minutes' -- they are whenever their would have been a commercial when the show aired on TV (with the exception of 'Misfits' which wasn't aired with commercials) -- and they are typically a minute or less. I can deal with that. A little break in a show doesn't bother me that much, even if I'm paying money. After all, it's a piddly $8/month.

Also, paying for Hulu Plus gives you 720p streams and access to the FULL catalog to almost all of their shows -- NOT just the last 5 episodes as someone above claims. That's true for non-subscribers, not Plus subscribers.

It's true that not every show is watchable from every device, but the vast majority of shows are. I personally got around this by building an HTPC for my living room (among other reasons!) where I do 99% of my TV watching.

The complainers need to realize that for $8/month the service is actually worth it to many, many people. I'll be sad if someone buys it and totally fucks it up. You also get next-day access to most (if not all) TV shows that Hulu carries -- you can't say that about Netflix. Considering that a cable package would cost at least 5x this per month I don't think it's a rip off at all.

I have to agree with the idea that Hulu was designed to fail so that these huge media companies can come along and say "There, we tried it and it didn't work!" and then go back to their 50+ year old business model.

I think it's more a case of the customers and the content owners wanting completely different things.

*We* want a less expensive alternative to cable that offers more flexibility as far as scheduling and devices.

*They* want a way to recapture some of the revenue that is "lost" when someone watches a show on an unlicensed streaming site or via p2p.

Their goal has never been to offer a replacement for cable and iTunes/DVD sales. They want to offer something you buy *in addition* to cable. They make more money from cable/TV ads and media sales so they don't license anything in such a way that it could supplant that model.

Netflix needs to buy Hulu, then buy HBO. Raise capital to do it if they have to and then use both those assets and their deal with Disney to revolutionize TV delivery. I'd love to see the Cable companies bring all their lawyers to bear to stop it. It'd be a glorious battle; one I would hope Netflix would win. Maybe even expose the cable cartel for what it is.

Sadly, Netflix couldn't even approach the cable cartel right now without being run out of the building and also losing their Disney contract.

Netflix + Hulu + HBO Go is largely considered the holy grail of all TV streaming options. Having it all under one roof would threaten cable subscriptions more than satellite ever could.

Netflix would probably become evil pretty quickly if they had all of that. Also, the release of Hulu content probably wouldn't get better in the short term, because the contracts with the content owners probably doesn't allow sensible distribution. Finally, as soon as Netflix owns Hulu, the content owners will just start another studio friendly website and let their Hulu contracts expire.

I have to agree with the idea that Hulu was designed to fail so that these huge media companies can come along and say "There, we tried it and it didn't work!" and then go back to their 50+ year old business model.

I think it's more a case of the customers and the content owners wanting completely different things.

*We* want a less expensive alternative to cable that offers more flexibility as far as scheduling and devices.

*They* want a way to recapture some of the revenue that is "lost" when someone watches a show on an unlicensed streaming site or via p2p.

Their goal has never been to offer a replacement for cable and iTunes/DVD sales. They want to offer something you buy *in addition* to cable. They make more money from cable/TV ads and media sales so they don't license anything in such a way that it could supplant that model.

Exactly. Hulu was started so that the media companies could "prove" that they were trying to be user friendly and releasing their stuff online while still protecting the older and more profitable model of distribution.

I have to agree with the idea that Hulu was designed to fail so that these huge media companies can come along and say "There, we tried it and it didn't work!" and then go back to their 50+ year old business model.

I think it's more a case of the customers and the content owners wanting completely different things.

*We* want a less expensive alternative to cable that offers more flexibility as far as scheduling and devices.

*They* want a way to recapture some of the revenue that is "lost" when someone watches a show on an unlicensed streaming site or via p2p.

Their goal has never been to offer a replacement for cable and iTunes/DVD sales. They want to offer something you buy *in addition* to cable. They make more money from cable/TV ads and media sales so they don't license anything in such a way that it could supplant that model.

The problem with that mentality is that in the not too distant future the majority of the coveted 18-40 demographic isn't going to have a tv and so by not adapting they're going to lose their old business model and not have a new offering that will actually capture that market. When something is a luxury you don't have much power as a provider to force the consumption model. What amazes me is that the studios already fought this battle in the late 70's/early 80's when they fought home video, and lost, badly, but it still grew their revenue despite their attempts to shoot themselves in the foot. Apparently there is zero institutional knowledge at these companies and thanks to cable and the internet this time there is serious competition for the eyeballs they want to attract, give it another decade and I bet they see enough reduction in revenue that someone will force them to adapt but they're apparently bound and determined to lose that time.

1. Commercials every 5 minutes2. Last 5 episodes of current season (unless season ended a month ago)3, Watch 10% of it's catalog via non-desktop computer.

F U Hulu, nothing but scammers.

Maybe I'm watching the wrong shows, since I don't have cable and get the majority of my shows from HULU+ I'm not sure that's true, but I'm seeing 2 commercials (~60 seconds) four times during an average 44 minute show. I also get all the episodes of current seasons of every show I'm watching. As for limitations for other devices besides a computer, I can't comment since I watch primarily on my TV via HTPC.Also with HULU+ I pay $8 a month as opposed to closer to $60. I want a product that gives me access to just the shows I want, in the quality I want, without commercials, for a reasonable price. Will I settle for what is available and adapt as things change, yes.

I've always wondered if everyone gets different commercial counts and commercial lengths. There are some shows where I'll put up with commercials, others I won't at all (I'm looking at you hulu exclusives), and still others where I will for a while but then get tired of them and switch to something else.

All of this data should be easily accessible to them. They'd be fools if they didn't have some commercial maximizing algorithm that adjusted commercial count and length based on the data. Things like how much and how often you use the service, your interest in a series (do you immediately watch new episodes, % of episodes viewed), how you react to commercials in similar shows, etc..

Hulu Plus isn't perfect but it's largely okay. My biggest problem with it is that the app on the Roku box is unstable as hell, and I routinely have to reboot the Roku box (involving physically unplugging the damn thing) to fix the Hulu app. Other than that, it's fine, just not perfect.

Netflix was worth paying for until I ran out of content and they started monkeying around with the fees. Hulu was never worth paying for, they just moved the things I wanted to see behind a paywall.

Of the remaining shows that I follow, half are available through their own websites, the rest I can subscribe to via iTunes. At least when something like Archer has ads at the beginning and end (for other FX programs), I can just skip them.

$500 million is a much better offer than I would have expected them to get.

1. Commercials every 5 minutes2. Last 5 episodes of current season (unless season ended a month ago)3, Watch 10% of it's catalog via non-desktop computer.

F U Hulu, nothing but scammers.

While I wish for nothing more than Hulu Plus to get rid of its ads (I'd even pay an extra couple dollars a month if they did), I don't remember them ever claiming that Hulu Plus was ad-free. That was one of the major criticisms of it from the beginning. Also, when I tried out the free trial 9 or 10 months back, I don't remember ever finding a show that I couldn't access via Hulu Plus on my tablet, though I honestly didn't spend much time with it. The ad thing killed it for me instead.

Or are your second 3 items above referring to changes to the main, non-paid Hulu service after Hulu Plus rolled out? That's more on target, though the way you present your argument, it sounds like you're criticizing Hulu Plus for being advertised falsely.

Is Hulu really at fault? They are at the mercy of the content providors. If NBC or whomever tells Hulu they either give over ad revenue and only show a season of content, or they get no content at all..

The thing is Hulu is owned by a group of traditional media companies - namely NBCUniversal, Disney-ABC, and Fox in pretty close to an even split. If they wanted to show full seasons with no restrictions they could if they wanted to they own (or rather their owners own) the content in the first place.

I have to agree with the idea that Hulu was designed to fail so that these huge media companies can come along and say "There, we tried it and it didn't work!" and then go back to their 50+ year old business model.

Unfortunately, they will succeed into driving everyone to Torrents. Then as you say, blame the "pirates". That has been their tactic all along -- vilify file sharing and rally the troops around them. Player Piano, mix tapes, VCR ... the creative community has been falling line & sinker for decades.

Torrents? What is this 2004? XBMC+Sickebeard+Couch Potato, or just XBMC + Fusion unofficial addons gets you about 98% of of every tv show and movie ever made in one interface.

They ruined Hulu with all of the ads. I paid for Hulu plus and very soon after they backfilled the shows with more ads than you get on TV. I ditched my hulu subscription because of that. Its easier to watch broadcast shows with my tivo. I can pay less and get episodes from Amazon that are commercial free.

I personally think they are ruining Hulu with purpose. They want to be able to stand up later and say, "See! No one wants tv over the internet!" Reality is that no one wants to pay for show and receive more advertising that free broadcast tv. Im not paying for something stuffed with commercials. Stuff it with commercials, it should be free again.

1. Commercials every 5 minutes2. Last 5 episodes of current season (unless season ended a month ago)3, Watch 10% of it's catalog via non-desktop computer.

F U Hulu, nothing but scammers.

While I wish for nothing more than Hulu Plus to get rid of its ads (I'd even pay an extra couple dollars a month if they did), I don't remember them ever claiming that Hulu Plus was ad-free. That was one of the major criticisms of it from the beginning. Also, when I tried out the free trial 9 or 10 months back, I don't remember ever finding a show that I couldn't access via Hulu Plus on my tablet, though I honestly didn't spend much time with it. The ad thing killed it for me instead.

Or are your second 3 items above referring to changes to the main, non-paid Hulu service after Hulu Plus rolled out? That's more on target, though the way you present your argument, it sounds like you're criticizing Hulu Plus for being advertised falsely.

My gripe/problem with Hulu is commercials. Why on earth would I pay $8 to watch commercials? Amazon/Netflix baby. And considering that I can watch Daily Show and Colbert from the Comedy Channel's site, I rarely watch Hulu much anymore except the occasional talkshow. If they took away the commercials, I might consider paying them.

Hulu is fine for the cost. I got rid of my DVR and expensive HD cable service and replaced it with Hulu instead. I cut $70 off my cable bill but still get to see newly run shows in HD on demand on my TV legally. Yes, the ads are annoying but you pay for ads with cable as well. Yes, I lost ESPN and other cable-only channels, but I can live with it.

Hulu needs new leadership/ownership to somehow force the content owners into better deals and it would be a great service. Better yet, Netflix should buy them and roll it into one service. The biggest negative for Hulu is that their content deals are so short term that Netflix or whomever bought them would have to re-negotiate the deals all over again soon, and the networks aren't likely to play nicely with Netflix.

I can't wait for the old distribution networks to begin to die. I want to pay for stuff, but if I can't see your content on my TV in HD on demand for a reasonable price, then I will do without.

Probably because now that we have had a taste of TV without commercials (TV shows on DVD, DVRs, streaming, etc) it's hard to go back. I never thought I would be at a point where I couldn't sit through a commercial but I'm there. After I dropped Cable for streaming I was amazed at all the extra time I had on my hands. I watch everything I used to but spend 1/3rd less time in front of the TV.

Unless Hulu looses the ads I'll never be back. Sorry you can make the comparison to cable, but even then they are as corrupt. If I'm paying money I expect commercial free at this point in the media consumption game.

Yep. I subscribed to Hulu+ for a few months, but the amount of commercials during shows I was paying for was pretty ridiculous, so I unsubbed.

Hulu+ doesn't mean a better viewing experience, it just means they open a wider range of commercial-laden content. And that's fine, that's their choice, though I wish I understood that better when I first signed up.

1. Commercials every 5 minutes2. Last 5 episodes of current season (unless season ended a month ago)3, Watch 10% of it's catalog via non-desktop computer.

F U Hulu, nothing but scammers.

While I wish for nothing more than Hulu Plus to get rid of its ads (I'd even pay an extra couple dollars a month if they did), I don't remember them ever claiming that Hulu Plus was ad-free. That was one of the major criticisms of it from the beginning. Also, when I tried out the free trial 9 or 10 months back, I don't remember ever finding a show that I couldn't access via Hulu Plus on my tablet, though I honestly didn't spend much time with it. The ad thing killed it for me instead.

Or are your second 3 items above referring to changes to the main, non-paid Hulu service after Hulu Plus rolled out? That's more on target, though the way you present your argument, it sounds like you're criticizing Hulu Plus for being advertised falsely.

Did it ever occur to anyone that they are making Hulu suck for the express reason of getting people to come back to cable? They don't want Hulu to succeed, they want it dead and to make us all give up the cord cutting. They want a one-way communication with us. They broadcast, we consume. If Hulu stays, it has to compete with user generated content. They don't want that, they want to have a monopoly on information and entertainment. They want to be the only ones you go to. So they neuter Hulu.

Did it ever occur to them, that the majority that has cut the cable doesn't care? That the cable cutters are willing to pay for content, but not at the expense of the lack of quality that is on cable? If they cannot get the content legally, then there are other options.

When my wife lost her job a year ago, the 1st thing cut was cable. The Netflix subscription stayed.

No, they do. Just what they provide. Bell has Bell mobile tv for smartphones and tablets for which you buy hours seperatly for and does not count towards your cap. Rogers has a bunch of internet on demand crap. They just want you to use there crap.

As to using plugins, what's the point ? Its still copyright infringement, so why not just torrent it and get no commercials plus any device support?

I have Hulu Plus, Netflix, Vudu, Amazon and TiVo in my system. The 'best' clients are ones on my new Panasonic plasma (P65 GT50) but everything I own has one.

I love Hulu Plus. I have multiple TiVos, but haven't opted for their semi-SlingBox stuff yet. So when I'm on the road for a week or so, the iPad apps for Hulu and NetFlix get a ton of use.

The longest commercial break is never more than 90 seconds, and usually 30-45. That's just not that big a deal for me because of the convenience. Plus, Hulu has some great content like the Criterion Collection and shows like 'SPY' and 'The Booth At The End' that are worth it for me, at least.

My outlay monthly for all providers and a 30Mbps pipe is about $200. Since I rarely buy movies, music, and go out to the theatre, I'm good with that.